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Hi there, I'm having issues with the 'Opportunity cost'. I can't seem to understand if as the price decreases, the opportunity cost increases?

Hi there, I'm having issues with the 'Opportunity cost'. I can't seem to understand if as the price decreases, the opportunity cost increases? Or vice versa. Help please.


Consider the following events that change prices. For each one, say whether the opportunity cost of consuming the affected good increases or decreases.


Affected good

a) A local movie theatre offers a student discount. Movie tickets

b) A tax on soft drinks passes in your state. Soft Drinks

c) Subsidies on corn are cut in half Corn subsidies

d) Your student medical centre begins offering flu shots for free Flu shots

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Opportunity cost is the price foregone in order to... View the full answer

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Opportunity cost is the cost of forgoing an action i.e. buying something. For example, when you are faced with the problem of... View the full answer

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